Jefferies Raises PT on Cott Corp. (COT) Following EBITDA Upside

Jefferies maintains a Hold rating on Cott Corporation (NYSE: COT), and raised the price target to $10.00 (from $9.10) following the 1Q15 results. The mixed 1Q results showed COT falling short on revenue. However, a better-than-expected GM of 29% (vs. 27.9% consensus) was a driver behind COT's 8% EBITDA upside.

Jefferies analyst, Kevin Grundy, commented for them, saying, "We are increasing our FY15-17 EBITDA outlook by > 5% to reflect 1Q upside, higher DS synergies, and more favorable margin outlook, thus bringing our EBITDA est. relatively in-line with consensus. So far, so good with the DS integration and valuation remains undemanding at 7x EV/EBITDA; however, Street est. look reasonable, the base biz remains constrained, and mgmnt's targets (post DS) may prove to be too ambitious, keeping us on the sidelines."

For an analyst ratings summary and ratings history on Cott Corporation click here. For more ratings news on Cott Corporation click here.

Shares of Cott Corporation closed at $9.00 yesterday.

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